20170609 ASTM SIAS Infrastrucutre day Sept7th rev Ago · )lqdqfldo 5hvxowv 7udiilf 7duliiv...
Transcript of 20170609 ASTM SIAS Infrastrucutre day Sept7th rev Ago · )lqdqfldo 5hvxowv 7udiilf 7duliiv...
Going Global2017 – 2021 Strategic Plan
September 2017
Investor Presentation
First Half 2017 Results
“
”
This document (the “document”) has been prepared by ASTM Group and SIAS Group (the “companies”) for the sole purpose described herein. Under no condition should it be interpreted as an offer or
invitation to sell or purchase or subscribe to any security issued by the companies or its subsidiaries.
The content of this document is of purely informative and provisional nature and the statements contained herein have not been independently verified. Certain figures included in this document have been
subject to rounding adjustments; accordingly, figures shown for the same category presented in different tables may vary slightly and figures shown as totals in certain tables may not be an arithmetic
aggregation of the figures which precede them.
This document contains forward-looking statements, including (but not limited to) statements identified by the use of terminology such as "anticipates", "believes", "estimates", "expects", "intends", "may",
"plans", "projects", "will", "would" or similar words. These statements are based on the companies’ current expectations and projections about future events and involve substantial uncertainties. All
statements, other than statements of historical fact, contained herein regarding the companies’ strategy, goals, plans, future financial position, projected revenues and costs or prospects are forward-looking
statements. Forward-looking statements are subject to inherent risks and uncertainties, some of which cannot be predicted or quantified. Future events or actual results could differ materially from those set
forth in, contemplated by or underlying forward-looking statements. Therefore, you should not place undue reliance on such forward-looking statements.
The companies do not undertake any obligation to publicly update or revise any forward-looking statements. The companies have not authorized the making or provision of any representation or
information regarding the companies or their subsidiaries other than as contained in this document. Any such representation or information should not be relied upon as having been authorized by the
companies.
Each recipient of this document shall be taken to have made their own investigation and appraisal of the condition (financial or otherwise) of the companies and their subsidiaries.
Neither the companies nor any of their representatives shall accept any liability whatsoever (whether in negligence or otherwise) arising from the use of this document.
This document may not be reproduced or redistributed, in whole or in part, to any other person.
DISCLAIMER
Milan –September 7th, 2017
2
3
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic Plan
Final Remarks
1 2 5 6
SUMMARY
Milan –September 7th, 2017
Ecorodovias Financials
Results
3EPC
Itinera
4
Financial Results1
4
Milan –September 7th, 2017
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic Plan
Final Remarks
Ecorodovias Financials
Results
EPCItinera
5
Milan –September 7th, 2017
0.45
200
58
325
651
- 200 400 600 800
0.32
229
95
323
538
- 100 200 300 400 500 600
SIAS SpAEUR/Millions
ASTM SpAEUR/Millions
Revenues (1)
Adj. EBITDA(2)
Group Adj. Net Profit(3)
2016 Dividend flows (Euro)
Operating Cash Flow
+25%
+5,3%
+13%
+8,4%
-30.2%
+2.9%
+24%
+24%
Total FY2016 Dividend €73M44% Pay Out Ratio
2.5X Adj. NFP/Adj. Ebitda
Total FY2016 Dividend €73M44% Pay Out Ratio
2.5X Adj. NFP/Adj. Ebitda
Total FY2016 Dividend €42M44% Pay Out Ratio
2.4X Adj. NFP/Adj. Ebitda
Total FY2016 Dividend €42M44% Pay Out Ratio
2.4X Adj. NFP/Adj. Ebitda
(1) ITINERA consolidation(2) Adjusted for non-operating items(3) Net result adjusted for extraordinary items (investments available for sale & one off amortization)
1H 2017 Group’s Periodic Financial Information
+4,3%
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic Plan
Final Remarks
Ecorodovias Financials
Results
EPCItinera
1H 2017 Group’s Periodic Financial Information
6
UNIQUE INDUSTRIAL PLAYER• Integrated
Business Model• Operating
Synergies
FOCUS ON CORE BUSINESS• High level skills
and expertise• Consolidated track
record
Milan –September 7th, 2017
1,624
89.5
4,614
105
500
- 1,000 2,000 3,000 4,000 5,000
+3,45% adjusted
1,568
89.5
4,614
-
500
- 1,000 2,000 3,000 4,000 5,000
SIAS SpAEUR/Millions
ASTM SpAEUR/Millions
Toll Road Revenues(1)
Construction Revenues(2)
Traffic
Adj. NFP(3)
Motorways Capex
+4,8%
+6,8%
+0,2%%
+4,8%
+3,45% adjusted
+6,8%
-4,9%
Increasing Profitability, strong Cash Generation, solid Financial Profile
YTD Share Price performance +55,43% (August 31st closing
price reference)
YTD Share Price performance +55,43% (August 31st closing
price reference)
2,5€/Bn of Available Sources Funding at ASTM Group level
(1) Toll Road Revenues net of ANAS Fees(2) Amount gross of intra group cancellations and Itinera consolidation from July 1st 2016(3) Adjusted for the Net Present Value of payable due to ANAS
YTD Share Price Performance +105,22% (August 31st closing
price reference)
YTD Share Price Performance +105,22% (August 31st closing
price reference)
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic Plan
Final Remarks
Ecorodovias Financials
Results
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HighlightsItalian network
Equity investment
SATAP A4
SATAP A21SAV
ASTI-CUNEO
ADF
CISA
SALT
ATIVA
SITAF
SITRASB
ATS
BreBeMi
TE
Main motorway operator in the North-West of Italy
Network: ~1,460km (1)
(of which ~104 under construction) equal to approximately 22% of the national grid
Main motorway operator in the North-West of Italy
Network: ~1,460km (1)
(of which ~104 under construction) equal to approximately 22% of the national grid
ACP-A21: concession
agreement signed on May 31st 2017
(1) Including the stretch ACP-A21, concession agreement signed on May 31st 2017.
Subsidiaries consolidated with the line-by-line method
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic Plan
Final Remarks
Ecorodovias Financials
Results
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HighlightsItalian network (**)
1) Inclusive of the Parma and Nogarole Rocca Stretch (81km – not yet built)2) 23Km under construction3) Originally 23,5 years from the completion (Under negotiation reduction of the maturity to 31/12/2030
in the SATAP A4 extention program)4) Concession expected to start in the next months – Figures make reference to the former Concessionaire
– Final % stake after the disposdal to Ardian, expected by year end5) Concession expired; additional 2 years expected of prorogatio
Concessionaire Stretch % Stake Km Maturity2016FY Toll
Revenues(€M)
2016FYEBITDA
(€M)
2016FY Net Profit (€M)
2016FY NFP(€M)
Est.@
31/8TV
(€M)
ControlledCompanies
(Line by Line Consolidation)
SATAP
A4 Torino – Milano
99,87%
130,331/12/2026 +
4Years(7) 233,8 169,6
97,6 669,2
TBD(8)
A21 Torino – Piacenza 167,730/06/2017 +
2Years(5) 177,1 117,1 102
SALTSestri Levante - Livorno, Viareggio - Lucca e Fornola - La Spezia
95,23% 154,9 31/07/2019 183,9 122,5 50,8 195,8 290
ADF Savona – Ventimiglia 70,92% 113,2 30/11/2021 152,9 94,1 35,5 56,3 99
CISA La Spezia – Parma 99,35% 182(1) 31/12/2031 95,7 55,2 11,4 4,4 -
SAV Quincinetto – Aosta 65,08% 59,5 31/12/2032 67,5 41,6 17,5 50,4 -
ATS Torino – Savona 100,00% 130,9 31/12/2038 64,6 32,8 10,9 41,1 -
ASTI-CUNEO Asti-Cuneo 60,00% 78(2) 31/12/2030(3) 17,4 2,3 1,4 205,7 -
AUTOVIA PADANA
Piacenza - Brescia (4) 51% 88,6 31/12/2041 65,0 32,0 10,6 172 -
Joint ControlledCompanies
(Equity Method Consolidation)
ATIVA
Tangenziale di Torino, Torino - Quincinetto, Ivrea - Santhià e Torino –Pinerolo
41,17% 155,831/8/2016 +
2Years(5) 123,3 74,2 19,8 (47,2) 102
SITAFTraforo del Frejus Torino – Bardonecchia
36,60% 94 31/12/2050 126,4 76,0 25,2 209,8 -
SITRASBTraforo del Gran San Bernardo
36,50% 12,8 31/12/2034 11,3 4,6 - (12,6) -
TETangenziale esterna di Milano
62%(6) 32 30/04/2065 45,0 24,7 (36,2) 1.041 -
6) Agreement reached with Banca Intesa on July 28th. By the way co-control still in place till the end of 2018.
7) 4 years exentions under approval of MIT in the Asti-Cuneo Cross Financing Program
8) Satap A4 will be eligible for a significant TV in the A33 cross financingscheme
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic Plan
Final Remarks
Ecorodovias Financials
Results
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Simplication and organization
Tangenziale Esterna -BreBeMi.
Agreement with Banca Intesa:
On July 28th Sias signed an agreement with Intesa Sanpaolo to swap their respective partecipations in Tangenziale Esterna di Milano and BreBeMi by 31 December 2018. Sias will concentrate its investments in Tangenziale Esterna di Milano
Sias stake in TEM @ 62,22% and in TE @ 61,88 (directly and indirectly through TEM)
The completion of the transaction is subject to the condition precedent of the Granting
Body (MIT/CAL) obtaining the authorisations/waivers from the lending banks and the
Italian Antitrust Authority.
Sias cash out: € 20,6mln as well as coverage of commitments and guarantees of
around € 9,9mln
Sias intends to initiate discussions with potentially interested parties so as to be able
to guarantee, through the transfer of shareholdings agreement and corporate action,
aa joint control situation of the investment in TEM / TE along the lines of the current
arrangement with Intesa
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic Plan
Final Remarks
Ecorodovias Financials
Results
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Financial 1H17 Results
ASTM Group –Strong financial performance and operating cash flows generation
Dividend pay-out ratio FY2016: 44%Dividend ps in 2016: 45 euro cent
Dividend yield on FY 2016: 4,44%2017-2021 DIVIDEND CAGR: +7%
ASTM Group
€ in millions1H16
Actual1H17
Actual (*)Chg.
1H17 vs. 1H16 Chg. %
Revenues 522.1 651.0 128.9 24.7%
of which net toll revenues 477.3 500.3 23.0 4.8%
Adjusted EBITDA (**) 308.6 324.7 16.1 5.2%
EBITDA margin 59.1% 49.9% n.a. n.a.
Net result assigned to the Parent Company's Shareholders 49.3 46.0 (3.2) -6.6%
Adjusted Net result assigned to the Parent Company's Shareholders (***) 51.0 57.6 6.6 13.0%
Adjusted net debt (****) Dec31st 2016 vs June30th 2017 (1,621.5) (1,624.0) (2.5) 0.2%
Adjusted EBITDA FY2016 n.a n.aAdjusted net debt / adjusted EBITDA FY16 n.a n.a
Operating cash flows 184.7 200.2 15.5 8.4%
Motorway sector capex, net of grants (*****) 82.3 85.9 3.6 4.4%
662.72.4x
(**) Adjusted for non-operating items
(****) Adjusted for the Net Present Value of payable due to ANAS: €162,96m as at 30June17 and €158.1m as at 31Dec16(*****) Motorw ay sector capex gross of grants amounted to €83,8m in 1H16 and €89,5m in 1H17
(*) Consolidation of Itinera, starting from July 1, 2016
(***) Net result adjusted for extraordinary items (investmnents available for sale)
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic Plan
Final Remarks
Ecorodovias Financials
Results
EPCItinera
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Financial Results
ASTM Group –Revenues Breakdown
2017 1H Revenues increased by c.€129m (+24,7% vs. 1H16) thanks to Motorway sector recovery and Itinera’s consolidation, starting from 1st July 2016
ASTM Group - Revenues
€ in millions1H16
Actual1H17
ActualChg.
1H17 vs. 1H16 Chg. %
Net toll revenues 463.8 485.4 21.6 4.7%
Royalties 13.5 14.9 1.4 10.7%
Motorway Sector 477.3 500.3 23.0 4.8%
Construction/Engineering 6.2 108.7 102.5 n.a.
Technology Sector 20.2 18.7 (1.5) -7.3%
Other revenues and Services (Holdings) 18.4 23.3 4.8 26.3%
Revenues 522.1 651.0 128.9 24.7%
522.1
651.1
23.0
102.5
(1.5)4.8
661.7
500
520
540
560
580
600
620
640
660
680
700
1H16 Revenues Motorway Sector Construction & Engineering Technology Sector Other revenues and Services(Holdings)
1H17 Revenues
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic Plan
Final Remarks
Ecorodovias Financials
Results
EPCItinera
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Financial Results
ASTM Group –EBITDA Breakdown
ASTM Group - EBITDA
€ in millions1H16
Actual1H17
ActualChg.
1H17 vs. 1H16 Chg. %
Motorway Sector 304.5 321.6 17.1 5.6%
Construction/Engineering 3.7 8.2 4.5 121.6%
Technology Sector 10.1 7.6 (2.5) -24.8%
Services (Holdings) (7.0) (8.2) (1.2) 17.1%
Reported EBITDA 311.3 329.2 17.9 5.8%
Non-recurring items (2.7) (4.5) (1.8) n.a.
Adjusted EBITDA 308.6 324.7 16.1 5.2%
308,6
324.6
17.1
4.5 (2.5)(1.2)
(1.8)
295
300
305
310
315
320
325
330
335
FY15 Adjusted EBITDA Motorway sector Construction/Engineering Technology Sector Services (Holdings) Non-recurring items FY16 Adjusted EBITDA
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic Plan
Final Remarks
Ecorodovias Financials
Results
EPCItinera
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Financial Results
ASTM Group –H1 2017 Net Debt
ASTM Group - H1 2017 Net Debt in line with FY2016 Net Debt
(1,621.5) (1,624.0)
200.2
(95.4)(16.4) (37.0) 10.4 (44.9)
(19.4)
(1,700.0)
(1,600.0)
(1,500.0)
(1,400.0)
(1,300.0)
(1,200.0)
(1,100.0)
(1,000.0)
(900.0)
(800.0)
(700.0)
(600.0)
(500.0)
(400.0)
(300.0)
Adjusted net debt31Dec16 Operating Cash Flows
Motorway sectorcapex and grants
Primav stakeacquisition
Ecorodovias Stakeacquisition Investments disposal Dividends Other
Adjusted net debt30June17
ASTM Group - Net Debt
€ in millions30June17
Actual31Dec16
ActualChg.
1H17 vs. FY16
Cash and cash equivalents 602,4 888,8 (286,4)
Financial receivables (*) 466,1 451,8 14,3
Current Financial payables (516,4) (814,6) 298,1
Net cash / (debt) – current portion 552,1 526,1 26,0
Non current financial payables (2.015,5) (2.039,3) 23,8
Reported net debt (1.463,4) (1.513,2) 49,8
Non current financial receivables (**) 2,4 49,8 (47,4)
Payables due to ANAS (NPV) (163,0) (158,1) (4,9)
Adjusted net debt (1.624,0) (1.621,5) (2,5)
(*) Mainly including financial receivables from interconnections and grants to be collected
(**) Referred to minimum amount guaranteed by the grantor with regard to agreements signed by Euroimpianti. The decrease is due to Fiera Milano Parking re-classification
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic Plan
Final Remarks
Ecorodovias Financials
Results
EPCItinera
14
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Financial Results
SIAS Group –Strong financial performance and operating cash flows
Dividend pay-out ratio FY2016: 44%Dividend ps in 2016: 32 euro cent
Dividend yield on FY 2016: 3,80%2017-2021 DIVIDEND CAGR: +7%
SIAS Group
€ in millions1H16
Actual1H17
ActualChg.
1H17 vs. 1H16 Chg. %
Revenues 516.1 538.2 22.1 4.3%
of which net toll revenues 463.8 485.4 21.6 4.7%
Adjusted EBITDA (*) 313.8 322.6 8.8 2.8%
EBITDA margin 60.8% 59.9% n.a. n.a.
Net result assigned to the Parent Company's Shareholders 76.1 78.8 2.7 3.5%
Adjusted Net result assigned to the Parent Company's Shareholders (**) 76.9 95.3 18.4 23.9%
Adjusted net debt (***) Dec31st 2016 vs June30th 2017 (1,648.1) (1,567.6) 80.5 -4.9%
Adjusted EBITDA FY2016 n.a. n.a.Adjusted net debt / adjusted EBITDA FY16 n.a. n.a.
Operating cash flows 185.2 229.4 44.2 23.9%
Motorway sector capex, net of grants (****) 82.3 85.9 3.6 4.4%
(**) Net result adjusted for extraordinary items (investments available for sale)(*) Adjusted for non-operating items
(***) Adjusted for the Net Present Value of payable due to ANAS: €158,1m as at 31Dec16 and €163m as at 30Jun17
(****) Motorw ay sector capex gross of grants amounted to €83,8m in 1H16 and €89,5m in 1H17
661.52.5x
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic Plan
Final Remarks
Ecorodovias Financials
Results
EPCItinera
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Financial Results
SIAS Group –Revenues Breakdown 2017 1H Revenues are up 4,3% vs 1H 2016 – The boost comes from traffic recovery!
SIAS Group - Revenues
€ in millions1H16
Actual1H17
ActualChg.
1H17 vs. 1H16 Chg. %
Net toll revenues 463.8 485.4 21.6 4.7%
Royalties 13.5 14.9 1.4 10.6%
Motorway Sector 477.3 500.3 23.0 4.8%
Construction/Engineering (*) 0.7 0.0 (0.7) n.a.
Technology Sector 20.5 20.7 0.2 0.9%
Other revenues and Services (Holdings) 17.7 17.2 (0.5) -3.0%
Revenues 516.1 538.2 22.0 4.3%
(*) Deconsolidation of ABC Construction into Itinera
516.1
538.27.0
14.61,4 (1)
661.7
500
510
520
530
540
550
560
1H16 Revenues Tariff impact Traffic impact Royalties Revenues other sectors 1H17 Revenues
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic Plan
Final Remarks
Ecorodovias Financials
Results
EPCItinera
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Financial Results
SIAS Group –EBITDA Breakdown
SIAS Group - EBITDA
€ in millions1H16
Actual1H17
ActualChg.
1H17 vs. 1H16 Chg. %
Motorway Sector 304.5 321.6 17.1 5.6%
Construction/Engineering 3.8 0.3 (3.5) -92.1%
Technology Sector 10.1 7.6 (2.5) -24.8%
Services (Holdings) (3.6) (4.0) (0.4) 11.1%
Reported EBITDA 314.8 325.5 10.7 3.4%
Non-recurring items (1.1) (2.9) (1.8) n.a.
Adjusted EBITDA 313.8 322.6 8.8 2.8%
313,8
322.6
17.1--(3,5)
(2.5)(0.4) (1.8)
300
305
310
315
320
325
330
335
340
1H16 Adjusted EBITDA Motorway sector Construction/Engineering Technology Sector Services (Holdings) Non-recurring items FY16 Adjusted EBITDA
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic Plan
Final Remarks
Ecorodovias Financials
Results
EPCItinera
17
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Financial Results
SIAS Group –H1 2017 Net Debt
SIAS Group - H1 2017 Net Debt: €80m decrease thanks to high cash flow generation
SIAS Group - Net Debt
€ in millions30June17
Actual31Dec16
ActualChg.
1H17 vs. FY16
Cash and cash equivalents 472.9 757.5 (284.6)
Financial receivables (*) 466.1 448.4 17.7
Current Financial payables (358.2) (736.8) 378.6
Net cash / (debt) – current portion 580.8 469.1 111.8
Non current financial payables (1,987.8) (2,008.9) 21.1
Reported net debt (1,407.0) (1,539.8) 132.9
Non current financial receivables (**) 2.4 49.8 (47.4)
Payables due to ANAS (NPV) (163.0) (158.1) (4.9)
Adjusted net debt (1,567.6) (1,648.1) 80.5
(*) Mainly including f inancial receivables from interconnections and grants to be collected (**) Referred to minimum amount guaranteed by the grantor w ith regard to agreements signed by Euroimpianti. The decrease is due to Fiera Milano Parking re-classif ication
(1,648.1) (1,567.6)
229,4
((85,9)) 8,9) 12,4 -(47,7) (36,5)
(1,800.0)
(1,700.0)
(1,600.0)
(1,500.0)
(1,400.0)
(1,300.0)
(1,200.0)
(1,100.0)
(1,000.0)
(900.0)
(800.0)
(700.0)
(600.0)
(500.0)
(400.0)
(300.0)
Adjusted net debt31Dec16 Operating Cash Flows
Motorway sector capexand grants Asset disposal Minorities activity Dividends Other
Adjusted net debt30June2017
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic Plan
Final Remarks
Ecorodovias Financials
Results
EPCItinera
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SIAS Group financial structure
Group’s Financial Debt (1) allocation as of 30 June 2017
SAVSAV
Bank Debt:€10.4M
Bank Debt:€10.4M
SIASSIAS
Bank Debt:€667M
Bank Debt:€667M
ATCNATCN
Bank Debt:€16M
Bank Debt:€16M
Bank Debt:€10M
Bank Debt:€10M
I/Co Loan:€200M
I/Co Loan:€200M
I/Co Loan:€463M
I/Co Loan:€463M
I/Co Loan:€433M
I/Co Loan:€433M
ADFADF
SALTSALT
CISACISA
SATAPSATAP
Secured Bonds€1,000M
Secured Bonds€1,000M
Loans€525MLoans€525M
99.9% 95.2%
70.9%99.3%60.0%
I/Co Loan:€63M
I/Co Loan:€63M
I/Co Loan:€136M
I/Co Loan:€136M
ATSATS
100%
65.1%
I/Co Loan:€150M
I/Co Loan:€150M
I/Co Loan:€80M
I/Co Loan:€80M
Other controlled companies
Other controlled companies
Bank Debt:€0.7M (3)
Bank Debt:€0.7M (3)
SIAS is the main funding entity of the Group. The proceeds arising from corporate loans/bond issues areallocated – through intercompany loans – to SIAS’ operating subsidiaries. A security interest (pledge) overthe intercompany loans is granted to avoid structural subordination issue.
(1) Excluding (i) NPV of non financial debt vs. FCG (€186.5m), (ii) fair value of derivatives (€100.5m) and (iii) bank overdrafts (€25m). (2) Including Logistica Tirrenica(3) The repayment is born by ANAS (principal + interest). It is a State contribution granted to ATS to fund some investments and therefore not real debt
Bank Debt:€9,8M(3)
Bank Debt:€9,8M(3)
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic Plan
Final Remarks
Ecorodovias Financials
Results
EPCItinera
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Financial Results
ASTM Group’s Financial Debt(1)
details on June 30th
2017
Total ASTM Group long term financial debt: € 2,3Bn with an average maturity of some 4,5 years
ASTM Group average cost of debt is 3,6% and the 78% is at Fix Rate
(1) Excluding (i) NPV of non financial debt vs. FCG, (ii) fair value of derivatives and (iii) bank overdrafts.(2) 150€/M subject to usual roll over , already signed
264 271 255 186 176
52 52 47 8
- - -
500
-
- -
500
-
100
200
300
400
500
600
700
800
2017 2018 2019 2020 2021 2022 2023 2024 2025
Maturity Profile (EUR/Million)
Bonds Bank Loan
78%
22%
Breakdown by interest rate
Fix Rate Floating Rat e
(2)
12
25
46
2,229
2,312
2,000
2,100
2,200
2,300
SIAS Group Taranto Logistica Itinera Group ASTM ASTM Group
Debt Structure Bridge (EUR/Million)
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic Plan
Final Remarks
Ecorodovias Financials
Results
EPCItinera
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Financial Results
SIAS Group’s Financial Debt(1)
details on June 30th 2017
(1) Excluding (i) NPV of non financial debt vs. FCG, (ii) fair value of derivatives and (iii) bank overdrafts.(2) 150€/M subject to usual roll over
Total SIAS Group long term financial debt: EUR2.2Bn with an average maturity of some 4,6 yearsand a smooth amortization profile
SIAS Group average cost of debt is 3,49% and the 81%is at Fix Rate
Solid Credit Rating: Baa2 (stable outlook) byMoody’s (from 2010, confirmed on December 2016).BBB+ (stable outlook) by Fitch (from 2014,confirmed on April 2016)
Convertible Bond fully repaid by cash available, onJune 30th 2017
211 256 240 186 176 52 52 47
8
-- -
500
-
- -
500
- -
100
200
300
400
500
600
700
800
2017 2018 2019 2020 2021 2022 2023 2024 2025
Maturity Profile (EUR/Million)
Bonds Bank Loan
81%
19%
Breakdown by interest rate
Fix Rate Floating Rat e
(2)
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic Plan
Final Remarks
Ecorodovias Financials
Results
EPCItinera
21
Milan –September 7th, 2017
Financial Results
ASTM Group Available sources of funding on June 30th 2017
SIAS Group CASH AND CASH EQUIVALENTS as at June 30th 17(EUR/Millions) 938
CDP financing 290 SATAP
Pool Loans related to Società di Progetto Autovia Padana270 SIAS
VAT Pool Loan related to Società di Progetto Autovia Padana 66 AUTOVIA PADANA
Committed back up facilities 80 SIAS
Uncommitted bank credit lines 350SIAS and
Consolidated Companies
Committed facilities 70 SIAS
SIAS Group TOTAL UNDRAWN CREDIT LINES 1,126
SIAS Group TOTAL AVAILABLE SOURCES OF FUNDING (EUR/Millions)
2,064
ASTM Group (ex SIAS) CASH AND CASH EQUIVALENT as at June 30th 17 (EUR/Millions)
131
Uncommitted bank credit lines 291
ASTM andConsolidatedCompanies
Committed back up facilities 30 ASTM
Committed facilities 13 ITINERA
ASTM Group (ex SIAS) TOTAL UNDRAWN CREDIT LINES 334
GROUP TOTAL AVAILABLE SOURCES OF FUNDING (EUR/Millions)
2,529
Traffic, Tariffs & Regulatory Framework
2
22
Milan –September 7th, 2017
FinancialResults
Traffic, Tariffs &
Regulatory Framework
Appendix Strategic Plan
Final Remarks
Ecorodovias Financials
Results
EPCItinera
23
Milan –September 7th, 2017
Traffic, Tariffs & RegulatoryFramework
H1 2017 Traffic performance –(1 of 4)
H1 2017 traffic increased by 2,94% (reported) and 3,45% (adjusted for the effect of leapyear) vs. H1 2016 (+2.74% Light Vehicles and +3,52% Heavy Vehicles)
1/1-30/06/2017 1/1-30/06/2016 Changes
Light Heavy Total Light Heavy Total Light Heavy Total
Total Q1: 1/1 – 31/3 1,506 558 2,064 1,528 533 2,061 -1.44% 4.92% 0.23%
April 644 189 833 568 195 763 13.35% -3.24% 9.11%
May 595 218 813 602 208 810 -0.98% 4.41% 0.41%
June 690 214 904 647 203 850 6.68% 5.42% 6.38%
Total Q2: 1/4 – 30/6 1,929 621 2,550 1,817 606 2,423 6.29% 2.29% 5.29%
Total 1/1–30/6 3,435 1,179 4,614 3,345 1,139 4,484 2.74% 3.52% 2.94%
Effect of leap year 0.51%
"Adjusted" traffic change 3.45%
FinancialResults
Traffic, Tariffs &
Regulatory Framework
Appendix Strategic Plan
Final Remarks
Ecorodovias Financials
Results
EPCItinera
24
Milan –September 7th, 2017
Traffic, Tariffs & RegulatoryFramework
H1 2017 Traffic performance –(2 of 4)
Traffic performance by single Concession holder:
(data in million vehicleKm.)
1/1-30/6/2017 1/1-30/6/2016 Changes
Company Light Heavy Total Light Heavy Total Light Heavy Total
SATAP S.p.A. – A4 section 832 284 1,116 816 274 1,090 1.99% 3.83% 2.45%
SATAP S.p.A. – A21 section
649 332 981 640 322 962 1.43% 3.34% 2.07%
SAV S.p.A. 128 38 166 125 36 161 2.38% 4.86% 2.93%
Autostrada dei Fiori S.p.A.
431 148 579 432 143 575 -0.20% 3.47% 0.71%
SALT S.p.A. 693 183 876 672 178 850 3.22% 2.83% 3.14%
Autocamionale della Cisa S.p.A.
284 93 377 266 91 357 6.81% 1.68% 5.50%
Autostrada Torino-Savona S.p.A.
364 83 447 343 79 422 6.13% 5.07% 5.93%
Autostrada Asti-Cuneo S.p.A.
54 18 72 51 16 67 6.85% 9.77% 7.55%
Total 1/1–30/6 3,435 1,179 4,614 3,345 1,139 4,484 2.74% 3.52% 2.94%
Effect of leap year 0.51%
"Adjusted" traffic change 3.45%
FinancialResults
Traffic, Tariffs &
Regulatory Framework
Appendix Strategic Plan
Final Remarks
Ecorodovias Financials
Results
EPCItinera
25
Milan –September 7th, 2017
Traffic, Tariffs & RegulatoryFramework
H1 2017 Traffic performance –(3 of 4)
There is still upside from traffic recovery and past tariffs not yet recognized:
(1) Changes to the scope of consolidation in the period 2006-2017 were not considered (therefore, the “traffic volumes” for Ativa S.p.A., Autostrada Asti-Cuneo S.p.A. and Autostrada Torino-Savona S.p.A. were not included).
3.500
3.700
3.900
4.100
4.300
4.500
H1 2006 H1 2007 H1 2008 H1 2009 H1 2010 H1 2011 H1 2012 H1 2013 H1 2014 H1 2015 H1 2016 H1 2017
Milio
ni di
veico
li km
4.300
4.4224.432
4.2554.316 4.308
3.948
3.825
3.784
3.909
3.995
4.095
- 13,7%
-11,8%
-9,86%
-7,6%
-14,62%
Despite a recovery starting in 2014, “traffic volumes” (on a half-yearly basis) were lowerby around 7.6% - compared to pre-crisis data, as shown in the table below(1).
FinancialResults
Traffic, Tariffs &
Regulatory Framework
Appendix Strategic Plan
Final Remarks
Ecorodovias Financials
Results
EPCItinera
26
Milan –September 7th, 2017
Traffic, Tariffs & RegulatoryFramework
H1 2017 Traffic performance –(4 of 4)
(1) Changes to the scope of consolidation in the period 2006-2017 were not considered (therefore, the “traffic volumes” for Ativa S.p.A., Autostrada Asti-Cuneo S.p.A. and Autostrada Torino-Savona S.p.A. were not included).
Traffic performance: 2007 - 2017
Km vehicles(mln) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
2017 budget
Light 6.803 6.760 6.850 6.854 6.757 6.225 6.062 6.111 6.299 6.403 6.485 Heavy 2.363 2.310 2.110 2.197 2.189 2.028 1.974 1.984 2.046 2.101 2.133
Total (*) 9.166 9.071 8.960 9.052 8.946 8.253 8.036 8.095 8.345 8.504 8.617
Chg. YoY -1,0% -1,2% 1,0% -1,2% -7,7% -2,6% 0,7% 3,1% 1,9% 1,3%Chg. 2017bgt vs. 2007 -6,0%Chg. 2017current recovery vs. 2007 -4,5%
(*) Excluded ATS and ATCN traffic
8000
8500
9000
9500
10000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017Bgt
Km
ve
hic
les
(mil
ion
s)
Year
-549 VKm/mln (-6%)
9,166 VKm/mln baseline 2007
Traffic 2007 - 2017
-4,5%
FinancialResults
Traffic, Tariffs &
Regulatory Framework
Appendix Strategic Plan
Final Remarks
Ecorodovias Financials
Results
EPCItinera
27
Milan –September 7th, 2017
Traffic, Tariffs & RegulatoryFramework
Tariffs increases
Actual tariffs increases
% 2015 2016 2017
SATAP A4 1.50% 6.50% 4.60%SATAP A21 1.50% 0.00% 0.85%SALT 1.50% 0.00% 0.00%CISA 1.50% 0.00% 0.24%ADF 1.50% 0.00% 0.00%ATS 1.50% 0.00% 2.46%SAV 1.50% 0.00% 0.00%
Weighted average tariffs increases
% Requested Actual Requested Actual Requested Actual
Weighted Average Tariffs Increases 4.80% 1.50% 5.38% 1.48% 6.54% 1.42%
2015 2016 2017
FinancialResults
Traffic, Tariffs &
Regulatory Framework
Appendix Strategic Plan
Final Remarks
Ecorodovias Financials
Results
EPCItinera
28
Milan –September 7th, 2017
Traffic, Tariffs & RegulatoryFramework
Regulatory Framework
Extension Satap A4 (Milano-Torino)
STABILIZATION OF REGULATORY FRAMEWORK:
Completion A33 (Asti-Cuneo)
Financial Plan Renewals
Sias group is currently dealing with the Grantor (MIT) and the European Authorities in order to settle all the pending issue before year end
FinancialResults
Traffic, Tariffs &
Regulatory Framework
Appendix Strategic Plan
Final Remarks
Ecorodovias Financials
Results
EPCItinera
29
Milan –September 7th, 2017
Traffic, Tariffs & RegulatoryFramework
Regulatory Framework
Cross financing A4-A33 – main indicative terms:
Asti-Cuneo A33 completion and financial plan re-balance through cross financing with Satap A4 Milano-Torino:
Asti-Cuneo A33 capex to completion: € 350mln (2018-2021)
Satap A4 maturity extension at 31/12/2030 (+4 years)
Satap A4 annual tariff increase: CPI + 50bps (fixed for the outstanding period of the
concession)
Satap A4 Terminal Value method: capitalization of the credits on the cross financing
capex with a cap of 1,6x 2030 Ebitda (A4+A33)
Remuneration based on 3 different WACC:
• Wacc 1: fixed to be applied to Asti-Cuneo A33 initial RAB and completion capex
• Wacc 2: floating as per CIPE regulation, to be applied to Satap A4 initial RAB
• Wacc 3: fixed 2018-2022 to be applied to Satap A4 residual capex
Final settlement of all legal disputes on Asti-Cuneo A33 financial plan
FinancialResults
Traffic, Tariffs &
Regulatory Framework
Appendix Strategic Plan
Final Remarks
Ecorodovias Financials
Results
EPCItinera
30
Milan –September 7th, 2017
Traffic, Tariffs & RegulatoryFramework
Regulatory Framework
Financial plan renewals– main indicative terms:
Advanced negotiations on SALT, ADF, CISA, ATS and SAV 2014-2018 financial plans renewals based on:
Capex: stated on the original financial plans
WACC definition method, as per CIPE regulation with:
• ERP increased to 5,5%
• Risk free rate based on the last 12 months avg 10 years BTP
• Kd based on the effective debt cost with a cap of risk free rate plus 200 bps
Terminal value: agreement for SALT, ADF and Satap A21
Recovery of the missing past tariff increases for €40 mln regarding SALT, ADF, CISA,
SAV and Satap A21
Final settlement of all legal disputes on renewals and delays
Potential additional capex for ADF, ATS and Satap A21 in exchange of extension or additional Terminal Value
Safety measures
Ecorodovias Financial Results3
31
Milan –September 7th, 2017
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic Plan
Final Remarks
EcorodoviasFinancials
Results
EPCItinera
32
Milan –September 7th, 2017
Brazilian TollRoads -Ecorodovias
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic Plan
Final Remarks
EcorodoviasFinancials
Results
EPCItinera
33
Milan –September 7th, 2017
Brazilian TollRoads -Ecorodovias
May 2016 Acquisition of 64.1% of Primav Infrestrutura (41% of Ecorodovias looking through) May 2017 agreement for the acquisition of a further 5% of Primav Infrestrutura (3.2% of
Ecorodovias looking through)(1)
April / May 2017 Acquisition of further 2,51% of Ecorodovias(2)
46.7%
19.8%
0.4%
33.1%
Igli CR AlmeidaTreasury Shares Free Float
Igli69,1%
CR Almeida30,9%
50%
100%
50%
0%
25%
50%
75%
100%
Ordinary Shares Preferred Shares
Primav Infraestrutura Shares Ecorodovias Shares
(1) Purchase Price approx. 188M/BRL paid by (i) converting the IGLI Financial Loan vs CRASA (approx. 133M/BRL) and (ii) cash (approx. 55M/BRL) (2) Purchase price approx. 132M/BRL
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic Plan
Final Remarks
EcorodoviasFinancials
Results
EPCItinera
34
Milan –September 7th, 2017
Ecorodovias Highlights
4,274
178
855
1,289
- 1,000 2,000 3,000 4,000
4,055
114
754
1,168
- 1,000 2,000 3,000 4,000
Ecorodovias Financial (Comparable Pro-Forma) H1 2016BRL/Millions
Ecorodovias Financials (Comparable Pro-Forma) H1 2017BRL/Millions
Revenues (1)
EBITDA (2)
Net Profit (3)
NFP
109 137 143 13368 69
111128 148 152
76 77
220
264291 285
143 146
2013 2014 2015 2016 H1 16 H1 17Heavy Vehicles Light Vehicles
+2,1%
Cost discipline
Non-stategic asset disposal
New Tender Process
Explore the potential of contractual amendments
Opportunities in secondary market
Delevereging
New Tender Process
Privatization of highway concessions
Explore contractual amendments
Opportunities in secondary market
Strategy
+10,3%
+13,4%
+56,1%
+5,4%
(1) Excludes construction revenue(2) For comparison basis, excludes construction revenue, provision for maintenance and Impairment of Ecoporto
(non cash)(3) Excludes no-recurring and non-cash items: effect of assets held for sale (Elog) and Impairment and write off
Deferred Taxes at Ecoporto
4
35
EPC - Itinera
Milan –September 7th, 2017
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic Plan
Final Remarks
EcorodoviasFinancials
Results
EPCItinera
EPC
Construction -Itinera
36
Itinera Strategic and Financial Highlights
Milan –September 7th, 2017
48
1
3.1%
5
159
-10 90 190 290 390
-0.058
9
8.6%
19
222
-2000200400600800
Itinera 1H2016 Financials (Pro-Forma)(1)
EUR/MillionsItinera 1H2017 Financials
EUR/Millions
Revenues
EBITDA
Net Profit
NFP
EBITDA%
Gradual Internationalgrowth
Revenues recovery
Opportunities in secondary market
Backlog increase
Increase in margins
Solid financials
Significant exposure to international markets
Opportunities in secondary markets
IPO
12%
16%
1%
71%
Maintenance Maritime work
Civil Work Infrastructure
73%
27%
0%
25%
50%
75%
100%
Geografical MixItaly Abroad
4.2 €/Bn Itinera Backlog as of June 2017
(1) Including ABC incorporation
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic Plan
Final Remarks
EcorodoviasFinancials
Results
EPCItinera
EPC
Construction -Itinera
37
Milan –September 7th, 2017
BRAZIL
SWEDENNORWAY
DENMARK
SWITZERLAND
ITALY
POLAND
AUSTRIA
HUNGARY
ROMANIA
BULGARIA
ALGERIA
COTE D’IVOIRE
BOTSWANA
KENYA
KAZAKHSTAN
GEORGIA
ARMENIA
ISRAEL
IRAN
KUWAIT
UAE
OMAN
San Paolo(Brazil)
Washington DC (USA)
Johannesburg(South Africa)
Algeri(Algeria)
Bucarest(Romania)
Erevan(Armenia
)
Riyad(Saudi
Arabia)
QATAR
Dubai (UAE)Abu Dhabi (UAE)
Muscat (Oman)
Itinera Branches
HEADQUARTER
Countries where Itinerasubmitted tendersCountries where Itinerasubmitted tenders
Countries where Itineraawarded contractsCountries where Itineraawarded contracts
TORTONA (Italy)
ItineraInternational Expansion
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic Plan
Final Remarks
EcorodoviasFinancials
Results
EPCItinera
EPC38
Milan –September 7th, 2017
19%
34%
10%
33% 3%
Italy EU
Asia Middle East
Africa
64%
28%
5%3%
0%
25%
50%
75%
100%
Business Area
Infrastructure Civil works
Maritime works Railways
Itinera Tender as of June 2017
2%
9% 0%
66%
23%
Italy EUAsia Middle EastAfrica
50%
12%
23%
14%
0%
25%
50%
75%
100%
Business Area
Infrastructure Civilw works
Maritime works Railways
Itinera Pre-Qualification as of June 2017
2.4 €/Bn of tenders already submitted and still in progress
2.1 €/Bn of pre-qualifications already submitted and still in progress
Infrastructure
Civil Works
Maritime Works
Railways
Infrastructure
Civil Works
Maritime Works
Railways
Construction -Itinera
Itinera CurrentTenders and Pre-Qualifications
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic Plan
Final Remarks
EcorodoviasFinancials
Results
EPCItinera
EPC39
Milan –September 7th, 2017
Itinera acquired 50% of Halmar’s share capital and got the control through the
governance agreements signed
The deal is worth $ 60mln (of which $ 50mln to buy shares and $ 10mln as additional
equity)
Halmar is one the top five construction companies operating in the metropolitan area of
New York in the transport infrastructure sector (roads, motorways, railways, subways,
airports, bridges and viaducts)
The company aims to achive overall revenue of about $ 450mln with an average EBITDA
od 6%. During 2017, the company took part/planned to take part in tenders having a pro-
quota value of about $ 4bn
Construction -Itinera
Acquisition of majority share-holding in HalmarInternational LLC
July 6th: ITINERA enters the US Infrastructure Market through Halmar acquisition
Itinera’s equity holding in Halmar will enable the company to improve its ability to
respond successfully to EPC Contractor (Engineering, Procurement & Construction)
tenders, expand its bond capacity and, at the same time, focus on new Private Public
Partnership (PPP) projects that many US States are launching
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic Plan
Final Remarks
EcorodoviasFinancials
Results
EPCItinera
EPC
KEY OPERATIONAL DRIVERS
40
Acquisition
In July 2017, Itinera acquired a US construction company, leader in design-build project delivery
The deal is the starting point for USA market development both for the EPC and Concession Business Unit
Halmar and Itinera have an aligned strategy, complementary core capabilities and a common commitment to high cash flow generations and margins
Itinera targeted at 15% 2017-2021 Halmar USA Revenues CAGR and an yearly average new backlog acquisition of more than $300m
4,590
7
37
45
80
114
150
154
157
870
934
2,042
Totals
Hazardous & Solid Waste
Inland Waterways & Marine Ports
Dams
Levees
Public Parks & Recreation
Water / Wastewater Infrastructure
Rail
Airports
Schools
Electricity
Surface Transportation
$ Billion
2016-2025 Cumulative USA Infrastructure Needs
Business Line Construction: Itinera
Milan –September 7th, 2017
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic Plan
Final Remarks
EcorodoviasFinancials
Results
EPCItinera
EPC
KEY OPERATIONAL DRIVERS
41
Acquisition
AVIATION MASS TRANSIT RAILROAD HIGHWAYS BRIDGE
TOPHeavy Civil Contractor in the NY-Metro area
$20bn
Annual local market
25%
Historical bid capture annual rate
54 YEARS
Of proven performance
1ST RANKED
Locally owned transportation
contractor
Leaders in Design-Build Project Delivery
In-depth knowledge of America’s largest local construction market to deliver growth & profit
Business Line Construction: Itinera
Milan –September 7th, 2017
5
42
Appendix - Strategic Plan
Milan –September 7th, 2017
43
VALUE CREATION
Efficiency, Simplification
& Synergy
StrategicPartnerships
ShareholdersRemuneration
Growth & Geographical Diversification
Focus on Core Business, Exposure to different
Geographies,Expansion of current
Portfolio
New Model of Organization, Process Innovation and Savings
Sustainable growth andincreasing remuneration
Exploit Skills multiplying Opportunities
KEY STRATEGIC DRIVERS
Key Strategic Drivers
Milan –September 7th, 2017
FinancialResults
Traffic, Tariffs & Regulatory Framework
AppendixStrategic
Plan
Final Remarks
EcorodoviasFinancials
Results
EPCItinera
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic
Plan
Final Remarks
EcorodoviasFinancials
Results
EPCItinera
TOLL ROAD CONCESSIONS
KEY OPERATIONAL DRIVERS
44
GLOBAL MARKET POSITION CONSOLIDATION
SIMPLIFICATION OF GROUP STRUCTURE
EFFICIENCY
STRATEGIC AND FINANCIAL PARTNERSHIPS
ACCESS TO EQUITY AND DEBT CAPITAL MARKETS
• Continue to invest in Italy• Grow in Brazil• Entry into the USA Market• Other geographical areas to be evaluated on a case-by-case basis
• Increase SIAS value through Ecorodovias• Subsidiary mergers and integration• Corporate reorganization by business• Non-core assets disposal
• Strong cost control and lean structure• Overhead centralization• Enhancement of organizational models in compliance with
international best practices
• Implement new partnerships with industrial and financial investors
• Develop and maximize brand new partnership with
• Fund a sustainable, efficient and effective growth• Maintain a solid investment grade credit profile • Increase value for shareholders
Milan –September 7th, 2017
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic
Plan
Final Remarks
EcorodoviasFinancials
Results
EPCItinera
TOLL ROAD CONCESSIONS45
REGULATORY FRAMEWORK
GROWTH
SIMPLIFICATION & ORGANIZATION
• Financial Plans renewal
• Definition of WACC levels
• Asti-Cuneo: completion with additional capex through cross financing
• SATAP A4 (26% of SIAS Group EBITDA): extension + Terminal Value
• ATIVA and SATAP A21 tender: commitment to re-awarding
• ADF and SALT: exploit extension opportunities through EU requirements on tunnel safety measures
• Tangenziale Esterna: empower the industrial role, after the semplification of shareholders structure
• Incorporation of ATS in ADF and CISA in SALT
• Reorganization of 34% ITINERA stakes, currently at SIAS Group level
• Parking Business disposal
• Saving plan: yearly average cash cost reduction up to €20m at SIAS Group level
ITALIAN MARKET
Italian Market: theGroup‘s Backbone
€533m €538m€580m €613m €646m
20132012 2014 2015 2016
2012-2016 Italian Toll Road
EBITDA CAGR +5%
Milan –September 7th, 2017
TOLL ROAD CONCESSIONS
INTERNATIONAL GROWTH APPROACH
46
Milan –September 7th, 2017
Selection of target geographies based on three main key drivers: market GROWTH, business and regulatory RISKS and PROFITABILITY
The Group believes that EUROPE, LATAM and NORTH AMERICA represent a balanced and well diversified mix
Italy (EUROPE)
Brazil (LATAM)
USA (NORTH
AMERICA)
Growth
Risk
Yield
Other features to be considered:
Stable and advanced regulatory framework
Relevant traffic expansion
Significant infrastructure investment pipelines
Profitability in line with Group policy and Shareholders’ expectations
Favorable
Stable
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic
Plan
Final Remarks
EcorodoviasFinancials
Results
EPCItinera
SUCCESSFUL TRACK RECORD
47
2017-2021 Group growth strategy represents a new step in a process already successfully implemented in the past in terms of Asset Acquisition and Network Growth
ASSET ACQUISITION & NETWORK GROWTH
ATSacquisition
2012 2013 2016 2016 2017 – 2021
TE equity
subscription
Autovia Padana signing
Ecorodoviasacquisition
SecondaryMarket
PrimaryMarket
SecondaryMarket
PrimaryMarket
131 Km 32 Km 1,858 Km 88 Km
What‘sNext…?
TOLL ROAD CONCESSIONS
Milan –September 7th, 2017
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic
Plan
Final Remarks
EcorodoviasFinancials
Results
EPCItinera
TOLL ROAD CONCESSIONS48
GROWTH
SIMPLIFICATION
SYNERGY
• Projeto and federal tenders: awarding at least 2 new concessions
• ECOVIAS, ECOVIA, ECOCATARATAS, ECOSUL: exploit extension opportunities
• Secondary market: M&A activities represent additional opportunities
• Construction risk mitigation and facilitation of Construction and Technology Business Units entry
• Control engineering implementation
BRAZILIAN MARKET
Brasilian Market: a real currentopportunity
• Non-core assets: disposal of Logistic Assets and extension and valorization of Port Assets (Santos)
• Saving plan: yearly average cash cost reduction of up to R$70m
Milan –September 7th, 2017
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic
Plan
Final Remarks
EcorodoviasFinancials
Results
EPCItinera
TOLL ROAD CONCESSIONS
US MARKET
49
USA: the newchallenge
Take advantage of the local construction business unit to capture part of the significant pipeline in the transportation sector through the new P3 regulatory framework
2016-2025 Cumulative Surface Transportation Infrastructure Needs: $2 Trillion
“….our nation is a cross roads. Deteriorated infrastructure is impeding
our ability to compete in the thriving global economy and improvements are necessary to ensure our country is guilt
for the future…after decades underinvestment in our infrastructure
requires transformative action….”
ASCE 2017 Infrastructure report card
Milan –September 7th, 2017
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic
Plan
Final Remarks
EcorodoviasFinancials
Results
EPCItinera
TOLL ROAD CONCESSIONS
US MARKET
50
possibly limiting traffic risk (availability payment or shadow toll)…
surely greenfield or yellowfield(revamping)….
$150m budgeted Equity Investment…
2 initiatives…
even unsolicited…
sharing the initiatives and its risks with the Construction Business Unit and financial partners…
USA Approach
Toll Road Concessions Business Unit and USA P3 opportunities over the next 5 years
USA: the newchallenge
Milan –September 7th, 2017
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic
Plan
Final Remarks
EcorodoviasFinancials
Results
EPCItinera
TOLL ROAD CONCESSIONS
US MARKET
51
USA: the newchallenge
Milan –September 7th, 2017
EPC
Operation
Financing
Ownership
TRADITIONALD/B
D/B WITH OPERATION
GOVERNMENTALPROJECT
FINANCING
DBFOM CONCESSION
PROJECT ACTIVITY
Business Units
PUBLIC PRIVATE
PRIVATE
PUBLIC
PUBLIC
PUBLIC
PRIVATE
PUBLIC
PUBLIC
PUBLIC
PRIVATE
PRIVATE
PUBLIC
PUBLIC
PRIVATE
PRIVATE
PUBLIC PRIVATE
PRIVATE
PRIVATE
PUBLIC PRIVATE
P3s
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic
Plan
Final Remarks
EcorodoviasFinancials
Results
EPCItinera
€646m€901m
€750m
2016 2021
€1,651m
€646m
€1,007m€1,390m
€1,165m
2016 2021
€2,555m
€1,007m
TOLL ROAD CONCESSIONS
KEY FINANCIAL TARGET
52
+20%CAGR
+21%CAGR
Revenues EBITDA
Target EBITDA margin minimum of 65%
Target PFN/EBITDA 2.5x by 2021
2017-2021 SIAS dividend CAGR +7%
Brazil and LATAM (Current FX)
Italy (cross financing, extensions, A21 & ATIVA tenders)Milan –September 7th, 2017
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic
Plan
Final Remarks
EcorodoviasFinancials
Results
EPCItinera
EPC
KEY OPERATIONAL DRIVERS
53
Business Line Construction: Itinera
International Growth
Reverse revenues breakdown: 80%international and 20% domestic
Maximize operational partnerships
Acceleration of internationalization process through M&A
Act as in-house EPC contractor of the Group’s international toll-road concessions
Improve Profitability
Enhance project execution and risk control mechanism
Optimize contract cash flow generation
Maintain a sustainable financial structure
Integrate skills and capabilities through the partners
Evolve vision and strategy, develop highly engaged and well-trained international professionals
Synergy
Mitigation of Concession Business Unit construction risks, ensuring a fair technical and financial evaluation and reliable execution in terms of time and quality, minimizing contract claims
…benefitting from….
introduction within other geographical areas already covered by the other business units
Enhancement of theGroup’s competitiveness
Milan –September 7th, 2017
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic
Plan
Final Remarks
EcorodoviasFinancials
Results
EPCItinera
EPC54
USAItinera entry strategy:
acquisition
Northern EuropeItinera entry strategy: JV works with international and local partners
Perù and ColombiaItinera entry Strategy: JV works with third parties on toll road greenfield projects
BrazilItinera entry strategy: support the Group’s local investments for the development of the current portfolio and new initiatives
Southern Africa Itinera Consolidation Strategy: bidding for infrastructural works in countries with financial and political stability and reliability
GCC CountriesItinera consolidation strategy: JV works with international partners on infrastructure projects, exploiting the Group’s local presence in Oman
Easter EuropeItinera consolidation strategy: JV and local partners, exploiting Itinera reputation and local track record
IranItinera entry strategy: exploit strong local relationship
GEOGRAPHICAL CLUSTERS OF INTEREST
4.83%6.44%
3.14%
5.13%
4.95%
5.68%
6.83%
8.91%
4.30%
4.99%
7.67%
7.37%
2017-2021 Infrastructure Investment CAGR
2017-2021 GDP CAGR
Business Line Construction: Itinera
Milan –September 7th, 2017
Source: Timetric
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic
Plan
Final Remarks
EcorodoviasFinancials
Results
EPCItinera
EPC
KEY OPERATIONAL DRIVERS
55
Business LineMechanical & Electric Systems: EuroimpiantiElectronics
Develop Heating, Ventilation and Air Conditioning (HVAC), Energy Saving and Efficiency Solutions to be implemented in-house and for the market.
International growth, focusing on South America, Africa and GCC Countries, through:
Development and exploitation of synergies with Concession and Construction Business Units
Identification of strategic partners, establishing Joint Ventures with other operators already present in the foreign markets
Creation of a new portfolio of Long Term Service Contracts each ranging from €20m to €50m(service & commercial buildings and industrial plants)
Concessions of Public Lighting and Heating Systems, each ranging from €10m to €30m
Milan –September 7th, 2017
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic
Plan
Final Remarks
EcorodoviasFinancials
Results
EPCItinera
€32m €21m
€30m
€38m
2016 2021
€32m
€89m
EPC
KEY FINANCIAL TARGETS
56
Target EBITDA margin minimum of 8% for Construction and 10% for M&E by 2021
Target D/E 0.3x by 2021
Average annual Backlog acquisition €900m
Backlog Rotation 4 years for Construction and 2 years for M&E
Potential IPO by 2021 to support growth
USA
International (excl. USA)
Italy
€425m€273m
€392m
€420m
2016 2021
Revenues
+21%
CAGR
Current Perimeter CAGR: +9%
€425m
€1,085m
90%Construction
10% M&E
EBITDA
Current Perimeter CAGR: +9%
+22%
CAGR
89%Construction
11% M&E
Milan –September 7th, 2017
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic
Plan
Final Remarks
EcorodoviasFinancials
Results
EPCItinera
ENGINEERING 57
Change the business mixfrom captive to non-captive Focus on the most value adding aspects (i.e. safety systems and control engineering)
International business in USA taking advantage of the significant infrastructural pipeline and the Group’s local presence
Improve efficiency in order to align internal operational cost to the best market practice and benchmark
M&A activities potential acquisition of US engineering firm
US MARKET
Interesting pipeline and profitability for engineering services, both in synergy with other Group Business Units and on a stand alone market proposition
EU MARKET
Interesting growth for the engineering services in the Northern and Easter Countries in the toll road and railways sectors supported by EU development plan
ITALIAN MARKET
Decreasing synergies with existing Toll Road Concession network due to new Regulatory constraints
Market focusKEY OPERATIONAL DRIVERS
Engineering Business Unit industrial model under evaluation due to recent amendments to Italian Regulations
BRAZILIAN MARKET
Significant synergies with Toll Road Concessions in the maintenance engineering (inspection and monitoring)
Milan –September 7th, 2017
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic
Plan
Final Remarks
EcorodoviasFinancials
Results
EPCItinera
€39m
€25m
€1m€28m
€27m
2016 2021
€4m €2m
€3m0
€4m
2016 2021
ENGINEERING 58
Revenues EBITDA
Current PerimeterCAGR: +6%
Current PerimeterCAGR: +6%
€40m
€80m
+15%CAGR
+17%
CAGR
Target EBITDA margin a consistent minimum of 11% by 2021
70% revenues will be international and non-captive by 2021
Backlog Rotation 2.5 years
KEY FINANCIAL TARGET
Potential inorganic growth
International (Non captive)
Italy (Captive)
€4m
€9m
Milan –September 7th, 2017
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic
Plan
Final Remarks
EcorodoviasFinancials
Results
EPCItinera
TECHNOLOGY
KEY OPERATIONAL DRIVERS
59
Growth through Differentiation and Innovation
General Targets:
Domestic market share consolidation through new solutions based on industry standards and open interfaces
Export into foreign market the self-developed innovative technologies
Exploit IT in the framework of IoT and advanced analytics
Explore adjacent products in the field of infrastructure security and safety
Establishment of strong relationships with universities and research centers in order to be at the forefront of innovation of the Industry
Significant Global ETC Market growth
2017-2021 CAGR of 11%with EU and USA driving growth
Target revenues geographical breakdown
60% Italy and 40% International
Technology Business Unit will continue to work with Toll Road Concessions and EPC Business Units, while developing its own external market in Italy and internationallyMilan –
September 7th, 2017
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic
Plan
Final Remarks
EcorodoviasFinancials
Results
EPCItinera
TECHNOLOGY
KEY FINANCIAL TARGETS
60
Revenues EBITDA
€54m€48m
€1m
€32m
2016 2021
€80m%
€55m%
+8%CAGR
€14m€10m
€6m
2016 2021
€16m%
€14m%+3%
CAGR
Target EBITDA margin a consistent minimum of 20% by 2021
Backlog Rotation 3 years
InternationalItaly
Milan –September 7th, 2017
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic
Plan
Final Remarks
EcorodoviasFinancials
Results
EPCItinera
6
61
Final remarks
Milan –September 7th, 2017
2021 AT A GLANCE62
CONCESSIONSSIAS
2.6€bn
Revenues
1.7€bn
EBITDA
2.5x
NFP/EBITDA
9€bn
Capital Employed
>4,500
KM
Under management
>20
Concessions in Italy, LATAM and USA
EPCITINERA
EUROIMPIANTI ELECTRONICS
Revenues
1.1€bn
EBITDA
89€m
Debt / Equity
0.3x
Backlog
4€bn
ENGINEERINGSINA
Revenues
80€m
EBITDA
9€m
TECNOLOGYSINELEC
Revenues
80€m
EBITDA
16€m
NFP
CashPositive
Backlog
200€m
NFP
CashPositive
Backlog
250€m
Milan –September 7th, 2017
FinancialResults
Traffic, Tariffs & Regulatory Framework
Appendix Strategic Plan
FinalRemarks
EcorodoviasFinancials
Results
EPCItinera
632021 FINANCIAL TARGETS & GEOGRAPHICAL DIVERSIFICATION
Milan –September 7th, 2017
1.5€bn
0.7bn
NFP/EBITDA2.5x
3.8€bn
1.8€bn
NFP/EBITDA2.4x
VS
VS53% Italian
47% International
46% Italian54% International
2021
2021
100% Italian
100% Italian
REVENUES
EBITDA
2016
2016
2021
2021
2016
2016
International
Italian